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Milei ruled out dollarizing the economy this year: “Time is tight” - Infobae
Source:
www.infobae.com
February 06, 2024
Although free currency competition continues to be one of the priorities of his economic plan, the President clarified in an interview with journalist Iván Schargrodsky that there is no time to do it in 2024
This year there will be no dollarization, acknowledged Milei Europa Press
President Javier Milei ruled out advancing with dollarization this year. In a report given to journalist Iván Schargrodsky for his newsletter “Off The Record” in Cenital , the head of state rejected the versions that indicated that he had raised with the International Monetary Fund (IMF) his intention to modify the Argentine monetary system in the short term. term.
“ The issue of dollarization is not on the agenda with the IMF ,” answered the president from the plane that took him to Israel, where he is currently in a gesture of strong support for the government of Benjamin Netanyahu after the Hamas terrorist attack carried out. on October 7 of last year.
Despite this, the President said that free currency competition continues in his economic plan as a final step in the process that began with the sanitation of the Central Bank (BCRA) . “That reform is to create an anti-run bank, and once that anti-run reform is done, you can move on to a free banking system. You can settle the BCRA in any currency, although the simplest thing is to do it in dollars,” he explained.
The president also relativized how this dollarization will operate in the daily economy of Argentines, and presented it as "the final step of an entire process that begins with the sanitation of the BCRA." He said - for example - that the coin competitions he promotes do not necessarily imply that individuals use the North American currency as currency . “For example, an oil tanker is likely to use WTI; someone from gas will use BTU; in the field, Chicago Soybeans. The result is a currency basket where the weights are freely determined by individuals, which neutralizes you from the effects of the monetary policy of a particular country,” he developed.
With restraint, Milei avoided giving details about when the monetary objective will be achieved. “It depends on the speed at which you manage to change the type of financial system model,” he said, although he specified that “there is not enough time” to advance dollarization during 2024. “Think that if we maintained the current pace of sanitation of the BCRA would only be clean at the end of June. Adapting the financial system model can take up to a year. The only advantage is that the size of the system is so small that it could be done faster,” she justified.
Javier Milei traveled to Israel in the last hours
Faced with a technical consultation on the conditions for dollarization today, the president questioned the critical projections of economists critical of the Government , who warn that progress could not be made in that regime since they would need more foreign currency within the system. “You have to see what model they are looking at because the reality is that I have the constant base (which is worth USD 7.5 MM) and we have acquired dollars for USD 6.5 MM. In fact, those who carried out dollarization in Ecuador are giving me a report because they believe that we could do it now. I will see you when I return from the trip,” he said.
Milei insisted on describing Ecuador's plan for dollarization as “very successful” despite the fact that former president Jamil Mahuad , the architect of that model, had a deep crisis and his government fell when implementing it.
“That there are people who are intellectually dishonest or ignorant in monetary terms does not take away from the achievements of the case, even when, from my point of view, it could be done better. It is very stupid that Correa wants to blame the fiscal blunders on dollarization,” the head of state stressed.
“ The important thing is that it ended inflation forever ,” the report concluded with that response.
Javier Milei arrived in Israel this morning, where he will meet with his counterpart from that country, Isaac Herzog , to deepen bilateral relations. During the diplomatic activity, he will visit the Western Wall, where he will light a candle in commemoration of the Israelis killed in the terrorist attacks of October 7, 2023.
As part of a tour that will later also take him through Italy and the Vatican, where next Monday he will hold an audience with Pope Francis , Milei arrived at Ben Gurion Airport after 10 a.m. (Argentina time, 3 p.m. local time). The president, who traveled on a scheduled flight, thus began his second international tour since he was elected last year.
Source:
Milei descartó dolarizar la economía este año: “No dan los tiempos”
Si bien la libre competencia de monedas continúa siendo una de las prioridades de su plan económico, el Presidente aclaró en una entrevista concedida al periodista Iván Schargrodsky que no dan los tiempos para hacerlo en 2024
www.infobae.com
February 06, 2024
Although free currency competition continues to be one of the priorities of his economic plan, the President clarified in an interview with journalist Iván Schargrodsky that there is no time to do it in 2024
This year there will be no dollarization, acknowledged Milei Europa Press
President Javier Milei ruled out advancing with dollarization this year. In a report given to journalist Iván Schargrodsky for his newsletter “Off The Record” in Cenital , the head of state rejected the versions that indicated that he had raised with the International Monetary Fund (IMF) his intention to modify the Argentine monetary system in the short term. term.
“ The issue of dollarization is not on the agenda with the IMF ,” answered the president from the plane that took him to Israel, where he is currently in a gesture of strong support for the government of Benjamin Netanyahu after the Hamas terrorist attack carried out. on October 7 of last year.
Despite this, the President said that free currency competition continues in his economic plan as a final step in the process that began with the sanitation of the Central Bank (BCRA) . “That reform is to create an anti-run bank, and once that anti-run reform is done, you can move on to a free banking system. You can settle the BCRA in any currency, although the simplest thing is to do it in dollars,” he explained.
The president also relativized how this dollarization will operate in the daily economy of Argentines, and presented it as "the final step of an entire process that begins with the sanitation of the BCRA." He said - for example - that the coin competitions he promotes do not necessarily imply that individuals use the North American currency as currency . “For example, an oil tanker is likely to use WTI; someone from gas will use BTU; in the field, Chicago Soybeans. The result is a currency basket where the weights are freely determined by individuals, which neutralizes you from the effects of the monetary policy of a particular country,” he developed.
With restraint, Milei avoided giving details about when the monetary objective will be achieved. “It depends on the speed at which you manage to change the type of financial system model,” he said, although he specified that “there is not enough time” to advance dollarization during 2024. “Think that if we maintained the current pace of sanitation of the BCRA would only be clean at the end of June. Adapting the financial system model can take up to a year. The only advantage is that the size of the system is so small that it could be done faster,” she justified.
Javier Milei traveled to Israel in the last hours
Faced with a technical consultation on the conditions for dollarization today, the president questioned the critical projections of economists critical of the Government , who warn that progress could not be made in that regime since they would need more foreign currency within the system. “You have to see what model they are looking at because the reality is that I have the constant base (which is worth USD 7.5 MM) and we have acquired dollars for USD 6.5 MM. In fact, those who carried out dollarization in Ecuador are giving me a report because they believe that we could do it now. I will see you when I return from the trip,” he said.
Milei insisted on describing Ecuador's plan for dollarization as “very successful” despite the fact that former president Jamil Mahuad , the architect of that model, had a deep crisis and his government fell when implementing it.
“That there are people who are intellectually dishonest or ignorant in monetary terms does not take away from the achievements of the case, even when, from my point of view, it could be done better. It is very stupid that Correa wants to blame the fiscal blunders on dollarization,” the head of state stressed.
“ The important thing is that it ended inflation forever ,” the report concluded with that response.
Javier Milei arrived in Israel this morning, where he will meet with his counterpart from that country, Isaac Herzog , to deepen bilateral relations. During the diplomatic activity, he will visit the Western Wall, where he will light a candle in commemoration of the Israelis killed in the terrorist attacks of October 7, 2023.
As part of a tour that will later also take him through Italy and the Vatican, where next Monday he will hold an audience with Pope Francis , Milei arrived at Ben Gurion Airport after 10 a.m. (Argentina time, 3 p.m. local time). The president, who traveled on a scheduled flight, thus began his second international tour since he was elected last year.
